POLITICAL

ENVIRONMENTAL ECONOMIC

LEGAL SOCIAL

TECHNOLOGICAL

PESTLE ANALYSIS
 PESTLE Analysis
A macro environmental framework used to understand the impact of the
external factors on the organization and is used as strategic analytical
technique.
Political Factors determine the
extent to which a
government may influence
the economy or a certain
industry.
Economic Factors affect the business
operations and decision
making of the organization.
Social The cultural and
demographic aspects of the
environment.
 Political stability
 Tax policy
 Trade restrictions
 Tariffs
 Business cycles
 Economic growth
 Interest rates
 Inflation rate
 Unemployment
 Wages
 Exchange rates
 Age distribution
 Income distribution
 Lifestyle
 Population
 Emphasis on safety
 Career attitudes
 Consumerism
 Unions
 Level of education
Technological Factors affect the cost and
quality of the outputs. These
also determine the barriers
to entry and minimum
efficient production level.
Legal Factors with regard to
government laws and
regulations.
Environmental Factors refer to ecological
and environmental aspects.
 Automation
 Technology incentives
 Rate of technological
change
 R&D activity
 Patent protection
 Employment and labor
law
 Advertising law
 Competition law
 Health and safety law
 Taxation
 Subsidies
 Environmental
regulations
 Environmental impact
 Energy cost
 Energy consumption
 Waste disposal